Expansion Speeds Up As Federal Regulators Accelerate Black Butte Mine Expansion

The Department of the Interior announced Tuesday it is accelerating a federal review of Black Butte Mine expansion in Sweetwater County, setting a 28-day timeline for completing an environmental impact statement that typically takes years to finish.

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David Madison

August 13, 20253 min read

A dragline moves coal at the Black Butte mine in Sweetwater County.
A dragline moves coal at the Black Butte mine in Sweetwater County. (University of Wyoming Extension via YouTube)

POINT OF ROCKS — The Department of the Interior announced Tuesday it is accelerating a federal review of Black Butte Mine expansion in Sweetwater County, setting a 28-day timeline for completing an environmental impact statement that typically takes years to finish.

The proposed plan would allow development of Pits 10 and 15 under a federal coal lease unlocking an estimated 9.2 million tons of federal coal. The mine is projected to continue through at least 2039. 

The Office of Surface Mining Reclamation and Enforcement will complete the environmental review in just 28 days using authorities established under the national energy emergency declaration.

Steve Gili, general manager of the Black Butte Coal Company, said the accelerated review represents progress for the long-stalled project while addressing questions about the future of coal at the nearby Jim Bridger Power Plant.

"The EIS is proceeding forward, and this is a good move in a good positive direction," Gili told Cowboy State Daily on Tuesday. "Jim Bridger's conversion to gas is already factored into this. Coal-fired units will stay coal-fired until 2039."

The accelerated review represents a policy shift from the previous administration's approach to coal project permitting. 

Assistant Secretary Adam Suess said the action reflects the Trump administration's approach to "cutting bureaucratic red tape" while maintaining environmental oversight requirements.

Decade-Long Process

The Black Butte expansion has been under federal review since 2014, when the mine east of Rock Springs first applied to expand operations by 963 acres. The company secured initial lease approval in 2017 and obtained a state permit in 2021.

Federal approval stalled when the Biden administration took office and requested additional environmental assessments focusing on greenhouse gas emissions and carbon dioxide output. Mine manager Gili told Cowboy State Daily in 2023 that the review process had been at a standstill since January 2021, with federal regulators requesting increasingly detailed environmental studies.

The current administration is using emergency authorities from the January 20 national energy emergency declaration to expedite the review process. A virtual public scoping meeting is scheduled for Aug. 18, with written comments due by Aug. 21. The expansion will disturb approximately 450 acres while accessing the federal coal reserves.

Operational Impacts

The mine has supplied thermal coal to the Jim Bridger Power Plant since 1977, and has endured setbacks, including 19 layoffs in November 2023 and additional job cuts in 2024.

The Black Butte project requires an environmental impact statement because it involves accessing new federal coal reserves.

The Signal Peak Mine’s expansion in Montana was approved in June using emergency authorities similar to those applied to the Black Butte Mine. For Signal Peak, the approval authorized recovery of 22.8 million tons of federal coal after years of litigation and court-ordered environmental reviews. 

Regional Context

The Black Butte decision follows Monday's approval of the Antelope Mine expansion in the Powder River Basin, which unlocked 14.5 million tons of federal coal and extended operations through 2037. The Office of Surface Mining stated these approvals align with goals to "strengthen U.S. energy independence and increase domestic coal production."

Wyoming's coal industry experienced significant declines under the previous administration, with Powder River Basin production falling 30% in 2024 as utilities transitioned to natural gas and renewable energy sources.

Gov. Mark Gordon noted the connection between recent expansion approvals, stating recently he was "keenly aware of a pending decision on the Black Butte Mine expansion in Sweetwater County, which was also halted by the previous administration." 

 

David Madison can be reached at david@cowboystatedaily.com.

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David Madison

Energy Reporter

David Madison is an award-winning journalist and documentary producer based in Bozeman, Montana. He’s also reported for Wyoming PBS. He studied journalism at the University of North Carolina-Chapel Hill and has worked at news outlets throughout Wyoming, Utah, Idaho and Montana.